Adani stocks: Adani Group’s stock saw a drop of 2-4% on Monday after a Bloomberg report suggested that the US government might have widened its investigation scope.
During early trading, Adani Enterprises, the flagship company of the group, experienced a nearly 4% decline to an intra-day low of Rs 2,976.05, while Adani Ports and Special Economic Zone observed a decrease of over 3% to Rs 1,227.25.
Likewise, Adani Power, Adani Green Energy, and Adani Energy Solutions recorded declines ranging from 2% to 3%.
As per a Bloomberg article published on Friday, the actions of Gautam Adani, the founder and Chairman, are under scrutiny by the U.S. government. Additionally, they are investigating the potential involvement of Adani entities or affiliates in allegedly bribing Indian officials to secure favorable treatment in energy projects.
The investigation is being carried out by the U.S. Attorney’s Office for the Eastern District of New York in conjunction with the Department of Justice’s fraud unit. Furthermore, the inquiry also encompasses Indian renewable energy firm Azure Power.
In reaction to the report, Adani stated that it did not know about any investigation targeting the company or its founder. Adani stocks
This development arose over a year following a report by short-seller Hindenburg Research, which made allegations of fraud and market manipulation against Adani.
Despite the conglomerate’s denial of these allegations and its recent approval by India’s securities regulator, the Bloomberg report revived concerns.
Although the Hindenburg report initially resulted in substantial losses of over $100 billion in Adani shares, the stock has since recovered and even surpassed its levels before the report was published.
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However, data from Monday revealed significant losses in Adani’s dollar-denominated bonds following the Bloomberg report, as it raised concerns similar to those outlined in the Hindenburg note.
